Think again about buying Nikkei 225.

Today I faced a relatively massive stock decline in Nikkei 225 and other stock prices in Japan. I do not want to be emotional here, but this incident caused me to rethink whether or not the investment in the Japanese market is/was still the right decision.

The government and the Central Bank of Japan support the market with a large scale of money, which is true. It is, however, also confirmed that at this rate, the Japanese economy is seriously hopeless except for its robot technology and car industry. The prime minister of Japan is doing his best to keep the economy working well because I do not know how but the actual data shows that he has created an environment where it is easy for the elderly and homemakers to participate in the labour market. That would be one of the reasons to invest in the Japanese market. However, it will be inevitable that we will naturally face a vast, continuous and gradual economic decline in the long run in the future. Historically, the Japanese government has been underestimating the impact of the birthrate and population decline for too long.

After thinking about this matter in the title again, the bottom line is that it is good to invest in the Japanese market from a short-term perspective. However, it is entirely irrational to invest in this market in the long run.